“So much for the logic that says 1 share at $700 equals 7 shares at 100,” Philip Elmer-DeWitt reports for Fortune.
“Did Apple just pull a reverse Warren Buffett? Buffett, whose Berkshire Hathaway trades in six figures, famously wrote that he had no interest in a stock split that would replace his ‘clear thinking’ shareholders with more impressionable ones who ‘feel wealthier with nine $10 bills than with one $100 bill,'” P.E.D. reports. “Steve Jobs always said he agreed with Buffett. A stock split, mathematically, does nothing.”
P.E.D. reports, “With Apple up 25% since April 23, the day the 7:1 stock split was announced, it clearly does something.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]